ANZ National has won a ruling from the Employment Relations Authority for NZ$1.28 million recoverable from a former employee who caused losses to the bank by approving inflated mortgages as part of an elaborate scheme.The employee, Zamir Hussein, worked as a mobile mortgage manager and was found liable for losses incurred by the bank in respect of 18 transactions where he recommended unconditional approval of mortgage applications. The borrowers then defaulted on those loans and their activities were referred to the Serious Fraud Office. While ANZ's actual damages exceeded NZ$1.28 million it decided to cap the claim at this amount based on the value of excess for which it would be liable under an insurance policy for such a loss.In January this year, Hussein was ordered to pay NZ$54,000 and the current amount is in addition to that. The bank provided evidence on seven of the 18 transactions with three borrowers which resulted in a total loss of NZ$1.67 million to the bank. The loss resulted from the difference in the mortgage amount and the actual amount realised by the bank from mortgagee sales, plus costs related to the sales.